Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
Jan CPI rose 6.4% vs. 6.2% estimates
Views 2.9M Contents 369

I am a fan of$Vanguard Short-Term Inflation-Protected Securi...

I am a fan of $Vanguard Short-Term Inflation-Protected Securities ETF(VTIP.US)$and hold it in a tax-deferred account, at a weight about three times that of $Schwab Strategic Tr Us Tips Etf(SCHP.US)$, Schwab's total TIPS fund. SCHP is a very good fund, but its duration of 7.7 years means it has a downside risk of about 15% if the 10-year real yield rises to about 0.90%, versus -0.97% today. Will that happen in the next two years? Who knows, but it is possible, and so there is risk. VTIP's downside risk is much lower, because of its 2.61 duration. I'd estimate its downside risk at about 5.5%. It has little upside potential, but high inflation will make returns attractive, if high inflation continues. $S&P 500 Index(.SPX.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
1
2
8
+0
4
Translate
Report
32K Views
Comment
Sign in to post a comment
Love reading and Drink Chinese Tea
3Followers
8Following
362Visitors
Follow